Published 4:00 am, Wednesday, April 14, 1999

1999-04-14 04:00:00 PDT OAKLAND -- The Oakland City Council last night approved its largest ever sexual harassment settlement, authorizing $825,000 to a woman who claimed she was raped and tormented by a former city youth counselor.

The council voted 5 to 2 to settle a lawsuit filed by a woman identified in the suit only as "Alice A." She had accused youth counselor Clayton Collins, 35, of Oakland of raping, beating, harassing and threatening to kill her in 1996 and 1997. At the time, Collins was her supervisor in a youth-at-risk program run by the city's Parks and Recreation Department.

In addition to the money, the city also agreed to pay an estimated $4,000 for six years' worth of workers' compensation for Alice A.'s psychiatric and medical bills stemming from the incident. The city did not admit any wrongdoing in agreeing to the settlement.

The city is facing the threat of another lawsuit. Attorneys for a teenager identified only as "Tonsa B." say they are preparing the suit that claims Collins pressured the then-15-year-old into having sex with him on several occasions in 1996. Collins was arrested April 1 in connection with that case.

According to authorities, Collins allegedly had consensual but illegal sex with the girl in hotel rooms in Berkeley, Oakland and Hayward from July to October 1996.

Pamela Price, who represents both Alice A. and Tonsa B., had been pressuring the city to finalize the $825,000 settlement, which she indicated earlier would be acceptable.

Last night's settlement came at a time when the city faces a possible budget deficit of $20 million. In a matter of weeks, the city's two-year budget will call for cutbacks in all city departments.

Still, Assistant City Attorney Randolph Hall said the settlement is the city's best shot at resolving the dispute and avoiding the costs of a trial.

"It's a risk management and a business decision," Hall said.

It is the largest sexual harassment settlement the city has ever paid, officials said.

As for any other potential litigation, Hall said the city does not consider Collins a liability. "If people have a meritorious claim, they will come forward with it," he said. "If it isn't, then hopefully we will win."

Collins, who has been convicted in bank robbery and drug possession cases, was hired by the city in 1991 to work with troubled teenagers because he had purportedly turned his life around.

He left the city payroll last spring under circumstances kept secret under a $57,000 settlement of his lawsuit alleging wrongful termination.

In that case, the city "ran a very substantial risk of having the arbitrator find that the dismissal did not meet the 'just cause' standards (for termination), and that meant Clayton would have been reinstated," said Carol Isen, Collins' union representative.

Wendy Rouder, deputy city attorney, said the city chose to settle without admitting any wrongdoing, to avoid the costs of trial.

Collins denied any wrongdoing in an interview with The Chronicle before his arrest, saying, "Everybody automatically assumes that if you're an ex-convict, you're always guilty."